Tokens in the market
The number of tokens currently available for trading. This is what market cap is based on.
Crypto Basics · Lesson 5
Market cap and supply: what actually determines value
Price alone does not tell you how big or expensive a crypto asset is. Market cap and supply give a more accurate view of scale, dilution, and risk.
Market cap explained
Market cap = price × circulating supply.
It represents the total value of all circulating tokens at the current price. Two assets with the same price can have very different market caps depending on supply.
Future supply
The total number of tokens that will ever exist or are planned to be released over time.
Fully diluted valuation (FDV)
FDV assumes all tokens are already in circulation. It shows what the project would be worth if every token was unlocked at the current price. A large gap between market cap and FDV can indicate dilution risk.
Low supply ≠ cheap
A coin with low supply can still be expensive if the price is high. Supply alone does not determine value.
High supply ≠ expensive
A coin with billions of tokens may have a low price but still a large market cap.
Unlocks matter
New tokens entering circulation can increase selling pressure and dilute existing holders.
Why this matters for investors
Market cap helps compare assets more fairly than price alone. Supply structure helps you understand future dilution, inflation, and selling pressure. Many beginners focus only on price, which can lead to poor decisions.
Quick evaluation checklist
Always check market cap, circulating supply, total supply, token unlock schedule, and whether insiders hold a large portion of tokens. These factors influence risk and long-term value.
Apply this in real market conditions
Use Coinstrooper’s live market tools to connect this lesson with real crypto data.
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